U.S. Treasury Secretary Janet Yellen Says US Default On Debt Would Trigger 'Economic Catastrophe'

 

Reuters: US default on debt would trigger 'economic catastrophe,' Yellen says 

WASHINGTON (Reuters) - U.S. Treasury Secretary Janet Yellen on Tuesday warned that failure by Congress to raise the government's debt ceiling - and the resulting default - would trigger an "economic catastrophe" that would send interest rates higher for years to come. 

Yellen, in remarks prepared for a Washington event with business executives from California, said a default on U.S. debt would result in job losses, while driving household payments on mortgages, auto loans and credit cards higher. 

She said it was a "basic responsibility" of Congress to increase or suspend the $31.4 trillion borrowing cap, warning that a default would threaten the economic progress that the United States has made since the COVID-19 pandemic.  

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U.S. Treasury Secretary Janet Yellen Says US Default On Debt Would Trigger 'Economic Catastrophe'  

A US debt default could spark mass unemployment, payment failures, and catastrophe that would raise interest rates 'into perpetuity,' Treasury Secretary Janet Yellen warns -- Business Insider  

Yellen warns debt default would disrupt Social Security payments, raise borrowing costs 'into perpetuity' -- Market Watch  

US default on debt will trigger an ‘economic catastrophe’: Yellen -- Al Jazeera